All items from Arizona Bankruptcy Help

Should the Owner of a Small Business File a Personal Bankruptcy? Part 3

In part 2 we saw what businesses are good candidates for chapter 7 bankruptcy. In part 3 we will see one more way a business can qualify, and learn what the personal bankruptcy process is like for a business.
One More Exception
Even if your business has significant assets or inventory, you may still be able to file and not lose your business if you have a U.C.C. or other lien against it. If the trustee attempted to sell physical assets or business inventory, he would be required to pay off any liens first, before paying the proceeds of the sale to your creditors. If the lien is large enough, it may offset the value of the assets and inventory enough that the trustee would choose not to sell any of the business assets. If you don't lose these assets to the bankruptcy, then you will likely be able to continue business once the bankruptcy is over.

So it is important to look at the value of your business as a whole, including any liens against it. If there is little value in it other than your labor and expertise, the trustee is not going to be interested in selling your assets or taking over your business as part of the personal bankruptcy process.
How Does the Personal Bankruptcy Process Work?
 



From Arizona Bankruptcy Help
Posted 24 weeks 5 days ago

What did Black Friday Really Cost?

Every year we hear the same story. Some ultra-motivated shopper pitches a tent in front of Best Buy one week before they open their doors for Black Friday. It seems to happen earlier and earlier every year.
How about the mad rush at Walmart? No matter the planning or the security, somebody somewhere gets trampled in the melee. After all, there is only a limited supply on hand. Why not set aside human decency and the real meaning of Christmas for cheap merchandise?
What happens when we peak behind the annual shock headlines of excess and injury in the name of bargain goods and examine the real cost to the consumer of buying things cheap, for the sake of cheap?
Credit Card or Kris Kringle Jingle?There’s never been a "Black Friday sale" for the necessities of life. If gallons of milk and loaves of bread were at a massive discount, maybe we could excuse the occasional trampling or fisticuffs. Considering these are items we could all probably live without, it makes it all the more alarming just how many Black Friday shoppers are using their credit cards.
The Internet Makes it So Easy!
A study by Javelin Strategy and Research shows an overall decline in credit card use. However, because of internet shopping, they predict online credit card purchases will increase by 63% over the next five years.



From Arizona Bankruptcy Help
Posted 24 weeks 6 days ago

Should the Owner of a Small Business File a Personal Bankruptcy? Part 2

In part 1 we learned that there is a common misconception that business owners cannot file for personal bankruptcy. In part 2 we will see what businesses are a viable candidate, and which can keep operating when your bankruptcy is complete.
How do I File a Personal Bankruptcy without Closing Up Shop?
If your business has a lot of assets, usually it will have to close when you file for personal chapter 7 bankruptcy. The bankruptcy trustee will sell the assets of the business and use the money to pay your creditors. He may also sell the business as a whole. Whatever the cause, the effect will be that your business is closed.
However, there are circumstances where a business will survive the individual Chapter 7 bankruptcy process and prosper when it's over. You might be surprised how many small businesses owners fall into this category.Types of Businesses that Survive Chapter 7 Bankruptcy
Ask yourself the following questions. If you answer yes to all of them, there is a good chance you will be able to file a personal Chapter 7 bankruptcy and eliminate all your debt while preserving your business.



From Arizona Bankruptcy Help
Posted 25 weeks 6 days ago

Should the Owner of a Small Business File a Personal Bankruptcy? Part 1

small business bankruptcyWhen you started your business, did you have the dream of being your own boss? Did you quit your old job working for one boss, only to find out that you now worked for every single customer, supplier, and business contact?

Maybe you made some mistakes when you started. Maybe circumstances beyond your control caused problems with your bottom line. Let's face it, sometimes even the best small business operation can still run into trouble.

Even when your business is running well, you might still have trouble with your personal finances. Whatever the case, a personal bankruptcy can often be the best solution.
But I Thought it Had to Be a Business Bankruptcy?
Most business owners assume that if they file for bankruptcy, it has to be a business bankruptcy. They also assume that if their personal financial situation is in trouble, they can't file a personal bankruptcy without harming their business.

Both of these assumptions are incorrect. In reality, a personal bankruptcy is often the best way to solve business trouble, personal financial issues, or a combination of both.



From Arizona Bankruptcy Help
Posted 26 weeks 15 hours ago

A Bankruptcy Rescue: Pay Day Loans Part 2

In part one we learned a about pay day loans. In part 2 we will learn about car title loans and how bankruptcy is a solution for both.
Pay Day LoansCar Title Terror
Car title loans are still legal in a handful of states, including Arizona. With few alternatives, is a car title loan a safe place to turn for instant cash?

If you have owned a car for a while, you may finally have some equity in it after all those years of faithfully making payments. Then you run into a tough spot financially and you need some cash quick. Why not tap into that equity you so diligently worked to create?



From Arizona Bankruptcy Help
Posted 26 weeks 4 days ago

A Bankruptcy Rescue: Pay Day Loans Part 1

Quick Change
Pay day loans. Car title loans. Fast cash. Quick cash. Just say the names out loud and listen carefully. Do any of those sound like a good idea?
When you need money fast, when your credit cards are maxed out, and when your bank accounts are empty, you may not have a lot of options. Once you go down this road, it's a tough one to get off of. Their fees and exorbitant interest rates make them nearly impossible to pay off.
The Pitfalls Abound
In Arizona and many other states, pay day loans are no longer legal. But that doesn't mean old ones aren't still on your credit report. You can still go to your corner 24 hour Quick Cash and get a car title loan. They still charge a ton of interest, and are still a bad idea.
If you need cash fast, there probably isn't a worse (legal) option than one of these loans, especially when you consider the massive amount of interest they charge, and the fact that they can easily repossess your vehicle if you don't pay.Pay Day and the Day After
Years ago, pay day loan stores were seemingly on every corner. People rushed in to get a little quick cash for the weekend or to pay bills. You could even get them without leaving the comfort of your own sofa, just by giving the right website your personal information.



From Arizona Bankruptcy Help
Posted 26 weeks 6 days ago

The Repo Man Cometh: Part 2

We saw in part one how to get your repossessed car back. In part two we will see what happens if you chose to give up a repossessed vehicle and how bankruptcy can help.
Go Ahead and Take it!
What if you can't afford the back payments and all of those extra fees? Even if you could, what if you just don't want the car back anymore?

Your debt is going to end up on your credit report, and I'm willing to bet it's going to be a lot larger than you expect. Here's why.

You already owe the back payments and extra fees, and now the lender is going to auction off your car, and it is going to be for an extremely low wholesale price. Chances are you already owed more on the vehicle than what it was worth, and now they are going to sell it for far less than what it is worth. Guess who gets to make up the difference. You do!

This debt will stay on your credit report, and if you don't attempt to pay it off, there is a good chance it will turn into a judgment. After the creditor gets a judgment, they likely will attempt to garnish your wages. Once your wages are garnished, they will continue to garnish each and every check you receive until they are paid in full, including the back payments, impound fees and repo costs. The only two ways to stop the garnishment before your debt is paid off are to quit your job or file for bankruptcy.



From Arizona Bankruptcy Help
Posted 29 weeks 16 hours ago

The Repo Man Cometh: Part 1

Is there anything scarier than walking out to your car only to find that it's gone? Sure it could happen any time somebody wants to steal your vehicle, but what about when it is taken by the repo man? He has the right and the means to take it, and there isn't a whole lot you can do about it; or is there?
Dude, Where's My Car?
Let's face it, repossession is scary. Even the word itself is ugly. But it is an unfortunate reality for anyone who falls behind on his car payments. And although the role of the repo man has been glamorized in movies and tv, in reality it's a lucrative but dangerous business for him, and a frustrating and costly business for those who have lost a vehicle to his services.
So your vehicle is gone. Now what do you do?



From Arizona Bankruptcy Help
Posted 29 weeks 5 days ago

DIY Bankruptcy: Is it a Good Idea?

Ever heard of do it yourself brain surgery or building your own rocket to fly to the moon? Though bankruptcy isn’t rocket science or brain surgery, it sure isn’t making Kool-Aid either. Legally you can file bankruptcy on your own, but that doesn’t mean you should, does it?
Don’t Take it from Me, Ask the Federal Government
Here is what the United States Bankruptcy Court says about filing bankruptcy yourself.
“While individuals can file a bankruptcy case without an attorney or "pro se," it is extremely difficult to do it successfully... hiring a competent attorney is strongly recommended.”
The court then lists several reasons.



From Arizona Bankruptcy Help
Posted 29 weeks 6 days ago

Popcorn Lung Victim Files for Bankruptcy 8 Years after 20 Million Dollar Verdict

Have you ever heard of those people who win the lottery and somehow blow through millions of dollars in a short time? Have you ever wondered how they end up where they do?
Don't Try and Butter Me Up
Eight years ago, Eric Peoples won a verdict of $20 million against his employer, a company that makes butter flavoring for popcorn. He alleged that exposure to the diacetyl used in the popcorn flavoring caused him irreparable lung damage. Doctors testified that he would eventually need a double lung transplant.Kernels of Truth
Little is known about what happened after the $20 million recovery. The Associated Press reports that Peoples bought a home allegedly worth $3.9 million. However, their bankruptcy paperwork claims the home is worth only $700,000. They also list personal property worth $33,000 and debts of more than $611,000, including over $100,000 owed to the contractor who built their home. It has not been reported whether or not Eric Peoples has yet received his lung transplant.



From Arizona Bankruptcy Help
Posted 30 weeks 1 day ago